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The USDA has confirmed details of disaster payments announced in late September. Up to $550 million is destined for the producers of rice ($31.93 per acre of long-grain, $52.46 for short-grain), cotton ($17.70), soybeans ($15.62) and sweet potatoes ($155.41) that endured massive rains in 2009. The USDA’s Farm Service Agency will issue the funds through the Crop Assistance Program (CAP).

"Producers of these crops suffered quality and quantity losses caused by excess moisture in 2009," said Agriculture Secretary Tom Vilsack in an Oct. 22 statement. "They continue to feel the effects of those crop losses and this program will provide timely assistance."

According to the USDA, “producers of eligible crops on farms in disaster counties who certify to a 5 percent, or greater, crop loss in 2009 due to excessive moisture or related conditions will receive a payment based on a predetermined payment rate times the planted acres of the crop. Per acre payment rates will be prorated by FSA in order to keep payments within available funds for the program. Producers will initially receive 75 percent or their CAP payment and once sign up is complete they will receive up to an additional 25 percent.

“The general eligibility provisions, payment limits and adjusted gross income limits that apply to FSA programs apply to CAP. No person or legal entity (excluding a joint venture or general partnership), may receive, directly or indirectly, more than $100,000 in CAP benefits. Additionally, CAP payments will be treated as 2009 revenue under the Supplemental Revenue Assistance Payments (SURE) Program.

“CAP is funded through Section 32 of the Agricultural Adjustment Act of Aug. 24, 1935, which allows the Secretary to use funds to reestablish the purchasing power of farmers, ranchers and producers.”